rice controls. ASSESSING POLITICAL VULNERABILITY Some products are more politically vulnerable than others, in that they receive more government attention. This special attention may result in positive or negative actions towards the company. Unfortunately there are no absolute guidelines for marketer's to follow whether the product will receive government attention or not. POLITICALLY SENSITIVE PRODUCTS. There are some generalizations that help to identify the tendency for products to be politically sensitive. Products that have an effect upon the environment exchange rates, national and economic security, and the welfare of the people are more apt to be politically sensitive. For products judged non essential the risk would be greater, but for those thought to be making an important contribution, encouragement and special considerations could be available. FORECASTING POLITICAL RISKS A number of firms are employing systematic methods of measuring political risk. Political risk assessment can: Help managers decide if risk insurance is needed Devise and intelligence network and an early warning system Help managers develop a contingency plan Build a database of past political events for use by corporate management Interpret the data gathered and getting forewarnings about political and economic situations REDUCING POLITICAL VULNERABILTY Even though the company cannot directly control or alter the political environment, there are measures with which it can lessen the susceptibility of a specific business venture. GOOD CORPORATE CITIZENSHIP A company can reduce its political vulnerability by being a corporate citizen and remembering: - 1. It is a guest in the country and should act accordingly 2. The profits are not it's solely, the local employees and the economy of the nation should also benefit. 3. It is not wise to try and win over new customers by totally Americanizing them. 4. A fluency in the local language helps making sales ...
